They sought policy support from the government to protect RMG and textile sectors, or else, they said, no government will be able to face the economic challenges that may arise out of any ‘suicidal decision’.
The entrepreneurs said a vested quarter is out to hold back the growth in the sector and demanded those involved in impeding the economy be identified and given exemplary punishment.
“Untimely policy decisions on garment sector are not acceptable in any way. Any suicidal decision might destroy the RMG sector…our economy doesn’t have the strength to cope with the severe fallout,” BGMEA president M Shafiul Islam Mohiuddin told a joint press conference.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) jointly arranged the press conference at the BGMEA conference room.
BTMA president Jahangir Alamin, BKMEA acting president M Hatem, BGMEA second vice president M Siddiqur Rahman and BGMEA director Nahid Hasan were, among others, present.
Speaking on the occasion, Mohiuddin said achieving the RMG export target of US$ 20.4 billion set for the current fiscal has become uncertain due to internal and external economic factors.
Apart from the global and domestic challenges, some untimely decisions taken by the government have created panic afresh among the entrepreneurs, he said.
Mohiuddin said the banks are charging 15 to 20 percent interest on lending after the withdrawal of the lending cap by the central bank. “In some cases, banks charge more than 20 percent interest.”
Meanwhile, the central bank has downsised the private sector credit growth to 16 percent for the remaining six months of the current fiscal. “It’s simply because of the government’s high bank borrowing…if this burden falls on productive sectors, it’ll shrink investment, production and employment and consequently have adverse impact on the overall macroeconomic economy,” he said.
The BGMEA president urged the government to take immediate steps for keeping the interest rate at a reasonable level.
He also criticised the IDRA (Insurance Development and Regulatory Authority) for cancelling special premium rate on export-oriented industrial units without any discussion with the BGMEA, BKMEA and BTMA.
“The introduction of normal premium rate cancelling special rate was not judicious,” he said requesting the finance ministry to restore the special rate.
Mohiuddin also criticised the increased charges realised by the Chittagong Port and said, “It’s not clear to us whether port should have commercial attitude or it should be service-oriented since Chittagong Port has Tk 4,000 crore FDR.”
On gas crisis, he said, “We’re really unhappy with the performance of Petrobangla (Bangladesh Mineral Oil & Gas Corporation -BMOGC). The government needs to give us a clear decision whether it’ll run mills and factories or fertiliser factories.”
He said industries are at stake due to absence of Petrobangla’s right decision and lack of coordination among the authorities concerned. “We need a solid energy policy.”
News:
UNB,
Thu, 02/02/2012
